Combined reporting

Combined reporting is like playing with blocks. You know how when you have a bunch of blocks of different shapes and colors, you can put them together to make a big tower or castle? Well, combined reporting is kind of like that.

Let's say there are a bunch of companies that are all owned by the same person or group of people. They each make money, but instead of just looking at how much each company made on its own, combined reporting makes them all work together like the blocks in your tower.

So, if one company made a lot of money, but another company lost money, they would be combined together to get a more accurate picture of how much the group of companies made or lost as a whole. This can be helpful for figuring out how much money the owner or group of owners should pay in taxes.

Think of it like this: if you have a bunch of toys that you love to play with, you want to make sure they are all safe and happy, right? You wouldn't just focus on one toy and ignore the others. Combined reporting is like making sure all the toys in the toy box are taken care of together, instead of just looking at one toy at a time.